What is the Cost of Buying a House in Indianapolis?

The cost of buying a house is different from home buyer to home buyer - depending on your down payment. However, there are certain costs that almost everyone will have, which you should be aware of when preparing to buy a home in Indianapolis.  

Upfront fees are those that are paid at the time of the offer or during the pending process. 

The other fees and costs from lenders, title companies and governing bodies are collected and disbursed at the closing appointment, not paid upfront. 

Earnest Money

Earnest money is included in the Purchase Agreement and it outlines how much it is and when it will be paid. In Indianapolis, earnest money is typically one percent of the purchase price. 

You should plan on this and be sure to have the money available to pay if your offer is accepted.

Inspection Fees

If your accepted offer includes inspections, you will have to pay for these upfront. Inspectors/Inspection companies typically have you sign an agreement and pay for the inspection before the appointment date and time.  The cost will depend on the type of inspections you would like to have. In addition to whole house inspections, most inspection companies also offer add-ons for pest, well/water, septic, radon and more. 

At a minimum, we like to see a whole house inspection ordered so you know what you are buying and if there are any major problems we need to be aware of.

This type of inspection will usually cover things like:

• Roof, foundation, attic, wall, ceiling and all structural elements of the home
• Electrical systems
• Plumbing
• Heating, air conditioning and ventilation systems

The company will outline exactly what is included and give you the opportunity to add anything else they offer. 

A whole house inspection can run from $350 and up. 

Appraisal Fee

If you are getting a mortgage loan, the lender requires an appraisal to ensure the home is valued for at least the agreed upon purchase price. A lender will not loan more than the amount on the official appraisal report.

The appraisal fee is typically due to the lender before they order it. The fee is different from lender to lender but is usually in the $350 to $650 range. 

Upfront Cost of Buying a House

To recap, you will need available funds to pay the following fees upfront during the offer and pending process. 

• Earnest Money - 1% of Purchase Price
• Inspection Fees - $350+, depending on the inspections you would like
• Appraisal Fee - $350 - $650, your lender can tell you for sure

Ideally, this money is already in your bank account as your lender will need to verify where the funds to pay these are coming from. 

More questions about the cost of buying a house? The Evelo Team of agents are ready to answer! Give us a call/text or email and we'll answer all your home purchase questions - (317) 863-9011